It has been an interesting year for Comtec Solar, as the company has made some significant business diversification decisions in an attempt to get rid of poorly performing assets, and expand into profitable pastures new. The company’s most recent endeavor is to build some EV charging facilities in China.
The strategic cooperation agreement for the project has been signed by Comtec Renewable Energy, a subsidiary of the group, and Luoyang Tourism Development Group, who will each own and finance the project down the middle. The two parties will also share development and operation duties for the smart energy charging facilities.
Since September 2016, Comtec has endeavored to move away from purely upstream business activities and expand into downstream solar project development. While this project may not be exactly in line with that goal, it certainly expands the company’s project development experience, with Comtec believing that it will “offer opportunities to further expand into downstream solar business.”
When Comtec decided to enter the downstream solar business at the beginning of 2016, it announced that it was looking to raise roughly USD 78.8 million in investment, of which part would be used to make the expansion. As part of this diversification, the company has also been selling some of its poorly performing upstream assets, most recently the assets of its subsidiary Comtec Malaysia for a fee of approximately USD 28.74 million.